Telecom Italia (TIT) investor relations material

Executive summary

• Q1 2026 results met expectations, with guidance confirmed and execution on track; strategic initiatives in digital sovereignty, AI-driven efficiency, and infrastructure optimization are progressing.

• Major capital structure actions included share capital reduction, saving shares conversion, a planned reverse stock split, and a share buyback program.

• Group revenues rose 1.4% year-over-year to €3,321 million, with growth in Brazil offsetting a slight decline in domestic operations.

• EBITDA fell 22.2% year-over-year to €732 million, mainly due to significant non-recurring personnel and litigation costs.

• Poste Italiane's public tender offer is under structured review by the board, with advisors appointed.

Financial highlights

• Group revenues rose 1.4% year-on-year to €3.3 billion; excluding MVNO, growth was 3.1%.

• EBITDA After Lease declined 2.7% to €0.8 billion; excluding MVNO, EBITDA AL grew 4.1%.

• CapEx was €0.4 billion (12.5% of revenues), with disciplined investment.

• Equity free cash flow was negative €0.4 billion due to seasonal working capital absorption.

• Net debt after lease at €7.3 billion; leverage ratio 1.99x.

Outlook and guidance

• Full-year 2026 guidance confirmed, with EBITDA after lease expected to accelerate in H2 as MVNO impact fades.

• Price increases and cost transformation to drive incremental revenue and efficiency.

• Plan update for 2026–2028 to be presented with Q2 results, factoring in market and tender offer developments.

• Shareholder remuneration includes dividends (70% of Eq. FCF AL net of concession fee) and a buyback of ~50% of Sparkle disposal proceeds.